Tamil Nadu Chief Minister M K Stalin has made an urgent appeal to Prime Minister Narendra Modi to intervene and resolve a severe crisis faced by the state's exporters. The crisis stems from a recent decision by the United States to impose a steep 50% tariff hike on certain Indian exports.
Massive Order Cancellations and Revenue Loss
In a detailed letter to the Prime Minister, Stalin highlighted the devastating immediate impact. He stated that exporters, particularly in the crucial textile hub of Tiruppur, have reported confirmed orders worth a staggering ₹15,000 crores being cancelled. Furthermore, the flow of new orders has virtually stopped.
This sudden halt has forced manufacturing units to slash their production by up to 30%. The financial hemorrhage is severe, with exporters across the districts of Tiruppur, Coimbatore, Erode, and Karur collectively losing an estimated ₹60 crores in revenue every single day. Stalin warned that this situation is pushing numerous Small and Medium Enterprises (SMEs) to the brink of collapse.
Job Losses and Global Competitiveness Eroded
The Chief Minister painted a grim picture of the human cost and long-term economic damage. To retain their international clients, manufacturers are being forced to cut their profit margins and offer deep discounts, severely eroding their business viability.
"Lakhs of jobs hang in the balance," Stalin emphasized, noting that the sectors are already witnessing layoffs and deferred wage payments. This threatens the economic stability of entire communities dependent on these industries. A similarly dismal scenario is unfolding in the state's footwear clusters located in Vellore, Ranipet, and Tirupattur districts.
Orders Diverted to Competing Nations
Stalin pointed out a critical strategic danger. Due to the tariff disadvantage, international buyers are diverting their orders to competing countries like Vietnam, Bangladesh, and Cambodia, which currently enjoy a tariff advantage over India.
"Once these markets are lost, regaining them would be an uphill battle, as entrenched supply chains rarely revert back," he cautioned. This shift, he argued, has ominous long-term implications for future employment, especially for women who form a significant part of the workforce in these export-oriented sectors.
Call for Swift Bilateral Resolution
Insisting on immediate action, the Tamil Nadu CM urged Prime Minister Modi to address the impasse through a bilateral agreement with the US at the earliest. He stressed that a swift resolution is imperative not only to revive the fortunes of the beleaguered exporters but also to reinforce India's position as a reliable global manufacturing hub.
The appeal underscores a pressing economic emergency where regional livelihoods and a key national export strategy are under direct threat from recent international trade policy changes.
